Offshore: Who provided the estimates of
the two fields’ 2C (contingent) resources, and
has Energean performed its own analysis of
Moore: Noble commissioned a Competent
Persons Report [CPR] on Tanin in 2012 and
on Karish in 2015. Following completion of Energean’s technical work a new CPR has been
commissioned. All CPRs have been produced
by NSAI which have also provided similar
reports for Tamar, Leviathan, Aphrodite and
others in the region. They are the leading
experts on fields in this part of the world and
were a natural choice for Energean.
The new draft CPR produced for Energean
has identified a larger volume of recoverable gas and liquids than was declared in
the older reports. In addition, Energean has
fully quantified the upside potential in the
discovered accumulations and the undrilled
structures in the leases which has led to a sig-
nificant increase in the assigned prospective
resources in both leases. Prospective volumes
(unrisked) exceed the current 2C resources,
which are around 67 bcm of gas and 32 MMbbl
of oil. Prospective resources sit within other
structures in the Tamar sands as well as in
deeper, potentially oil-prone, horizons of the
Cretaceous and Jurassic.
Offshore: Are the two fields fully appraised,
and does Energean plan to drill for further
gas/light oil in the area in future?
Moore: The Karish Main field in the Karish
lease is sufficiently appraised to enable development drilling to be undertaken with high confidence of the results. Two additional exploration
prospects have been identified to the north of
Karish Main and these will be drilled some
time after the main field has been developed.
The Karish structure is relatively simple with
the majority of contingent resources in the C
sand. The gas-water contact was penetrated by
the exploration well and this conforms to the
seismic amplitude anomaly. Hence volumetric
uncertainty is very low in this unit.
Significant upside potential has also been
identified in the B and D sands, and these
units will be appraised during the development
campaign. We also plan to drill to an exploration target a few hundred meters below the
D sand to investigate its potential.
Tanin is a more complex structure. The
discovery well is in the A block, which is considered to be in communication with the B and
C blocks via faults (seismic data shows they
share a common contact). The C block will
be appraised while it is developed. It contains
enough gas to justify at least one well, but will
likely need two to fully exploit its resources.
The Tanin lease also contains five further prospects that have significant upside and which
are structurally simpler. It is probable these
features will be drilled prior to developing Tanin
A to C. A deeper oil play has also been identified
and structures mapped in both leases that may
be drilled in the future. The FPSO has been
designed to allow a future oil discovery to be
tied back subsequently.
Offshore: What led the company to decide
on the Eastern Mediterranean region’s first
FPSO for the development, and what were
the alternative options?
Moore: Energean screened all potential
development options. We apply a screening
process that examines Value, which is a function of capex, opex, schedule, technical risk,
flexibility, environmental and safety aspects,
and so on. The FPSO-based solution was
selected mainly because it was assessed to
have the lowest technical and execution risks.
The FPSO solution also provides the smallest
environmental footprint as it avoids bringing
liquids close to or onshore. The onshore scope
is very small.
Israel is a very environmentally-conscious
country and Energean has a strong track
record of managing production and developments in an environmentally sensitive part of
Greece. Hence, we placed significant weight
on a solution that mitigates environmental
risk. By doing this we will also hopefully
simplify the approval process in Israel and
shorten the execution schedule. Other options
considered – shallow water platforms, onshore
processing – would have been much more
complex to execute and to gain the requisite
permits and approvals. Another benefit of an
FPSO is that it allows back pressures on the
reservoir to be minimized – hence increasing
recovery factors – and offers a flexible solution for tying back other small discoveries
in the area.
Energean performed all early feasibility and
screening work in house with some support
from IO on cost modeling. During the feasibility
stage, we employed KBR subsidiary Granherne
while Genesis performed concept engineering
as part of Energean’s larger arrangement with
Genesis’ parent company TechnipFMC.
Of fshore: How do local sea/weather conditions impact a floater in this area?
Moore: Sea and weather conditions in the
Eastern Med are relatively benign compared
with other parts of the world where FPSOs
and FPUs have been deployed. No significant
challenges were identified. It was important
to ensure that a spread-moored arrangement
could be employed (rather than turret-mount-ed). This has been achieved by positioning
the FPSO bow into the main weather direc-
tion, from the West. Weather from the North
(to the starboard) therefore dictates mooring
system design and riser configuration. Due
to the water depths and large, high-pressure
nature of the risers, lazy wave SCR risers are
necessar y. TechnipFMC provides solid exper-
tise in this area.
Offshore: Did you consider subsea tiebacks
to a platform in shallow water, as with Tamar
Moore: Tieback to a shallow- water plat-
form was investigated. While this solution
would have been slightly cheaper to build, the
assessed overall value was significantly lower.
For a development like Karish and Tanin it is
possible to accommodate all process facilities
on a normal sized FPSO.
Offshore: When is TechnipFMC due to
complete the front-end engineering design
[FEED], and what are the main issues to be
addressed for this project?
Moore: FEED will be completed by end
September. All major scope-related decisions
were closed out in the concept phase that was
completed in May. The decisions being ad-
dressed in FEED relate to selection of specific
process equipment, for example, whether to
use traditional shell and tube exchangers
or more novel printed circuit exchangers;
The Karish/Tanin fields and older well locations.